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Whether you are a UK citizen or are residing in the region for various reasons, you are free to trade or invest using a broker regulated by top-tier authorities. The broker you use must first be overseen by the Financial Conduct Authority (FCA), which is the UK’s financial landscape regulator.
For instance, if you have been looking to explore securities listed on the Dutch Stock Exchange, choose brokers overseen by the Authority for the Financial Markets (AFM). We will take you through what AFM regulation is all about. But first, let’s get familiar with the best AFM-regulated brokers in the UK based on our comprehensive market research.
List of the Best AFM Regulated Brokers UK
eToro – Overall Best AFM Regulated Trading Broker in the UK
XTB – Best AFM-Regulated Broker With No Minimum Deposit Requirement
DeGiro – Best AFM Regulated Stock Broker in the UK
AvaTrade – Best Low-Cost AFM-Regulated Broker in the UK
In this guide
Best AFM Regulated Brokers in the UK
Compare Best AFM Regulated Trading Brokers in the UK
Before coming up with this list of recommendations, our team of experts went on a thorough market research mission. We started by identifying as many AFM-regulated brokers in the UK as we could. Then, we signed up for trading accounts and tested their performances via their demo accounts. We also analysed their features and made comparisons to shortlist a few for the next step.
Since we always strive to remain unbiased during research, we visited Google Play, the App Store, and Trustpilot. We sampled hundreds of user comments and ratings regarding their experiences with the AFM-regulated brokers we shortlisted. In the end, we combined our test results and findings from user testimonials to create the recommendations list above.
That being said, here is our comparison table highlighting some of the features we identified on our top AFM-regulated brokers. Feel free to compare them and make informed choices.
Brief Overview of Our Recommended AFM Brokers’ Fees and Assets
Many UK traders looking for AFM-regulated brokers will prioritise security measures a broker takes to ensure their funds’ safety. Then, they will consider affordability and asset offerings to ensure they trade or invest in the right assets under budget. If you are a newbie, you probably wonder how to compare hundreds of brokers out there. We understand how lengthy and overwhelming the process could be. Therefore, we have share tables below showing brief overviews of our recommended AFM brokers’ fees and asset selection. Utilise the tables to select what best suits your trading or investment needs.
1. eToro - Overall Best AFM Regulated Trading Broker in the UK
eToro offers lots of opportunities for UK traders, including access to the Netherlands market. With eToro, you have an increased chance of making profits by trading forex, stocks, commodities, cryptocurrencies, and more. Moreover, this AFM regulated broker in the UK has a user-friendly platform that can be easily customised to suit any trader.
eToro is also a social and copy trading broker, and you can use these features to engage with other traders while improving your trading skills. In addition, stock traders will not incur commission for their trades, while forex traders will diversify their portfolio using over 40 currency pairs. Other trading assets also attract low charges, but you will have to pay a deposit of at least $100 to benefit from eToro’s offerings.
This AFM regulated broker also supports traders with excellent trading tools to help them maximise their potential. Other than a reliable mobile app, there are plenty of research tools and learning content. Therefore, test drive eToro first before going all in to make sure it suits your trading needs.
1
eToro Review
TradingGuides Rating:
✔Copy/Social trading
✔Low minimum to fund an account and begin investing
Variable spread depending on the market conditions
Multi-asset platform for over 2,000 instruments, including stocks, forex, commodities, etc
Cons
Withdrawal charges apply
High minimum deposit requirement
Types
Fee
Minimum Deposit
$100
Conversion Fee
depends on your payment method, currency, and eToro Club level.
Overnight Fee
vary according to the value and direction (BUY or SELL) of your position
Withdrawal Fee
all withdrawal requests are subject to a $5 USD fee
Inactivity Fee
monthly inactivity fee of $10 USD (charged after 12 months)
Stocks – there is a total of 800 stocks offered ranging from the biggest tech businesses in the U.S. to smaller companies from all over the world. Stock trading is always commission-free with eToro.
Cryptocurrencies – being one of the first brokers to jump on the cryptocurrency bandwagon, it comes as no surprise that eToro dominates this segment. With more than 20 coins and a number of cryptocurrency pairs, there is enough for all crypto traders.
Currency Pairs – in the early days, eToro was just another FX broker and even though they’ve developed since, the broker has stayed true to its roots. As a trader, you can choose between 49 currency pairs ranging from majors and minors to a few exotic ones.
Long-Term Investments– unlike many online brokers, eToro is also suitable for long-term investments. For example, their investment portfolios are a great way to diversify your portfolio and limit risk.
Additional assets – in addition to the above, eToro provides access to commodities, indices, and ETFs as CFDs. There is also a range of unique assets such as Crypto Portfolios that are only offered by eToro. This means that you can create a diverse portfolio with ease.
2. XTB - Best AFM-Regulated Broker With No Minimum Deposit Requirement
XTB is a highly secured and regulated broker that offers a rare and enticing advantage in the world of trading: no minimum deposit requirement. This exceptional feature ensures that traders, whether seasoned professionals or beginners just dipping their toes in the market, can start their trading journey without any financial barriers. For traders seeking cost-effective solutions, XTB offers competitive spreads, starting as low as 0.1 pips on forex pairs. While some other assets may carry slightly higher charges, the overall affordability of trading with XTB remains impressive.
XTB hosts over 5,300 trading securities, including forex, stocks, commodities, indices, cryptocurrencies, and more, allowing traders to explore various markets and effortlessly diversify their portfolios. The broker also goes the extra mile by providing traders with top-notch market analysis tools and educational materials on its xStation 5 and xStation Mobile user-friendly and intuitive platforms. Whether you want to stay updated on market trends or enhance your trading skills, XTB equips you with the necessary resources to succeed.
1
XTB Review
TradingGuides Rating:
✔ Constantly improving trading platforms
✔ Wide range of global markets
Regulated by multiple authorities, including the AFM, FCA, CySEC, and more
Over 5,300 CFD assets to choose from
A user-friendly broker with an intuitive design platform
Cons
Some CFD spreads can be high for low-budget traders
A £10 monthly fee applies after 12 months of inactivity
Type
Fee
Opening an account
$0
Account type: Standard: spread
0.5
Account type: Swap Free: spread
0.7
Forex
From 0.1 pips
Stock CFDs commission
0%
ETF CFDs
0%
Crypto commission
From 0.22%
Monthly Fee for maintaining an Account
Free of charge or up to 10 EUR
Withdrawal fee
$0
Deposit fee
$0
The broker boasts a wide selection of tradable assets, consisting of 1500+ instruments, including a range of global markets, such as forex, indices, commodities, ETFs, and others.
3. DeGiro - Best AFM Regulated Stock Broker in the UK
DeGiro has made stock investment easily accessible to UK clients. While testing it, we discovered that the broker hosts over 2.5 million global clients. This indicates how trusted it is in the financial space. Stock investing also comes with incredibly low fees, from £1 commissions on the US-listed stocks. Plus, this broker has no minimum deposit requirement, thus attracting all types of investors, including newbies and low-budget ones.
While most AFM-regulated brokers allow users to only trade stocks as derivatives, DeGiro supports purchasing and taking ownership of the securities. Thousands of stocks from 50+ exchanges are listed here, including popular options like Tesla, Netflix, Apple, Unilever, and more. Plus, you can diversify your portfolio across other asset classes like ETFs, indices, commodities, bonds, options, and more. The only pitfall we noticed is that DeGiro doesn’t have a demo account or live chat support.
1
DeGiro Review 2024
TradingGuides Rating:
✔ Low commissions
✔ One of the biggest brokers in Europe
Ultra-low trading charges, from £1 on US-listed stocks
Access to diverse stock markets for more opportunities
A user-friendly and modern design stock trading platform
You can buy stocks and take full ownership of the underlying security
Cons
No demo account
No live chat
Types
Fee
Minimum deposit
€0
Withdrawal fee
€0
Inactivity fee
€0
Deposit fee
€0
Custody fee
€0
Currency conversion
0.25%
Degiro offers a wide range of assets for traders as ETFs, Stocks, Bonds, Futures, Options, Structured products, Funds, Cryptocurrencies, and Commodities.
4. FXTM - Best AFM Regulated Forex Broker in the UK
Our experience with FXTM was exceptional as we explored a user-friendly and customisable platform compatible with desktop and mobile devices. Forex trading was a breeze, and we traded over 40 currency pairs, including major, minor, and exotic. And the best part is that users will incur low spreads from 0.0 pips on major currency pairs. For beginners, FXTM hosts quality forex trading learning materials to ensure you educate yourself accordingly before getting started.
Besides currencies, FXTM is home to an additional 1000+ CFD instruments, including indices, commodities, shares, and more. This means you have an excellent platform to diversify your portfolio across different asset classes. As a result, you get to reduce the risks that come with putting all your money in a single asset. We also like that this broker partners with the MT4 third-party platform to ensure forex traders have access to top-notch trading resources. These include interactive charts, technical indicators, trading history, and more. You can get started with a minimum deposit of £200 per the broker’s requirements.
1
FXTM Review 2024
TradingGuides Rating:
✔ Great education section
✔ Well-established broker
Advanced MT4 platform suitable for expert forex traders
A user-friendly and customisable forex trading platform
Low forex trading spreads from 0.0 pips
Offers a transparent fee structure with no hidden charges
Cons
Limited asset offerings compared to its peers
Inactivity fee applies only after six months
Type
Fee
Minimum deposit
$10
Overnight fee
$5
Deposit fee
$0
Withdrawal fee
$3
Inactivity fee
Yes
In the forex market, you have a choice of 250 currency pairs. If you decide to trade stocks, FXTM can offer you 170 options for stocks from different companies. Many of these stocks are offered not only as CFDs, but also for live trading. The broker also allows customers to trade cryptocurrencies.
5. AvaTrade - Best Low-Cost AFM-Regulated Broker in the UK
AvaTrade stands out as the top choice for UK traders seeking a low-cost AFM-regulated broker, offering a compelling blend of affordability and robust features. For instance, the broker’s low minimum deposit requirement of just £100 is a welcoming aspect for traders looking to start with a modest budget. This accessibility ensures that traders of all levels can access the platform and its abundant offerings without breaking the bank.
Note that AvaTrade offers commission-free trading with remarkably low spreads, starting from 0.03 pips. This cost-effective approach allows traders to keep more profits while engaging in a diverse range of over 1250 trading securities. Whether you’re interested in forex, stocks, commodities, indices, or cryptocurrencies, AvaTrade has you covered.
The AvaSocial platform further enhances the trading experience, enabling social interactions among traders. And for those who prefer automation, AvaTrade’s compatibility with Expert Advisors (EAs) and automated trading is a significant advantage, offering hands-free trading opportunities.
1
AvaTrade Review
TradingGuides Rating:
✔ One of the most popular brokers in the UK/EU
✔ Quick deposits and withdrawals
AvaTrade impresses with a robust portfolio of over 1250 assets, encompassing a wide range of trading instruments.
Forex – AvaTrade facilitates trading in a broad spectrum of currency pairs, enabling exposure to the dynamic forex market and diverse CFD options.
Stocks and Commodities – The platform offers a comprehensive selection of stocks and commodities, allowing users to invest in companies and raw materials across global markets.
Cryptocurrencies – AvaTrade supports trading in cryptocurrencies, providing access to a multitude of digital assets, including popular ones like Bitcoin, Ethereum, and more.
ETFs, Bonds, Treasuries, and Indices – AvaTrade’s offerings extend to ETFs, bonds, treasuries, and indices, offering diversification opportunities and exposure to various sectors and industries.
What is an AFM?
Established in 2002, the Authority for the Financial Markets (AFM) is the primary financial market regulator for the Netherlands. This independent authority’s primary role is to supervise the region’s financial market sector. Brokerage firms, banking institutions, insurance companies, and others must adhere to the AFM security rules.
Simply put, the AFM regulator is committed to promoting a fair and transparent financial space for residents in the Netherlands. Therefore, if you are choosing a broker for your needs, prioritise this regulatory status to trade or invest securely.
The best element of AFM is that it monitors the activities of brokers and other financial institutions in the Netherlands. This means that if a broker goes against its rules, it has the power to identify any breaches and take disciplinary measures. These may include issuing warnings, imposing fines, placing them under undisclosed custody, revoking licences, or even filing reports against them with the Public Prosecution Service.
When it comes to international presence, AFM adheres to the European Securities and Markets Authority (ESMA) rules. Note that the Netherlands is a member of the European Union, meaning that all brokers regulated by the AFM can accept clients within the EU. This includes the UK, although it is no longer an EU member since 2020.
How AFM Regulation Protects You
As mentioned earlier, the Dutch Authority for the Financial Markets is the primary regulator in the Netherlands. It ensures transparency and integrity of the region’s financial landscape, thus giving traders and investors a worthwhile experience. By implementing stringent regulations that financial institutions must adhere to, the AFM guarantees investors’ safety.
For instance, all brokers overseen by this authority should secure traders’ and investors’ funds in segregated accounts. Under no circumstance will a broker have access to your money even if it goes bust. Your funds will only be accessible to you. Plus, brokers should supply clients with products that meet their trading or investment needs.
Additionally, the AFM regulator protects you by ensuring the trading platform is safe from imposters and scammers. In this regard, brokers must engage clients in account verification procedures while signing up for accounts. In this step, you must provide copies of personal documents, such as ID card, passport, driver’s licence, utility bill, and bank statement. Some brokers will also ask users to send a selfie photo holding their ID cards.
Overall, using an AFM-regulated broker protects you in case something goes wrong. It will be easier for you to take legal action or file a complaint against a broker. With such brokers, there is no discrimination, and you are supported by quality customer service.
How to Choose the Best AFM Regulated Trading Brokers in the UK
As a beginner, we understand how sceptical you might be about choosing an AFM-regulated broker in the UK. The procedures involved can be overwhelming and lengthy. You must dedicate time to conduct extensive research that involves testing and comparing as many brokers as possible.
The good news is that you do not have to go through this strenuous research process. TradingGuide experts are here to offer tips for choosing what best suits your trading or investment needs.
The UK market is dominated by hundreds of brokers, some of which are not legitimate. Having this in mind, consider settling with a broker that is regulated by the Dutch Authority for the Financial Markets (AFM) and the Financial Conduct Authority (FCA). Confirming a broker’s credibility ensures you do not fall victim to scammers. With AFM security, your funds will be secured in a segregated account, thus giving you the peace of mind you need to focus on managing your trading or investment activities.
Whether you are a beginner or an experienced trader, choose an AFM-regulated broker with a user-friendly and customisable platform to trade long-term. Plus, it should have a fast trade execution speed and support you with quality trading tools that will guarantee an exciting experience.
For beginners, consider the availability of learning materials, ensuring they will help you boost your skill level. Most importantly, settle with a broker that has a demo account. This is especially if its minimum deposit requirement is high. With a demo account, you can test the broker’s performance, explore various securities, and gauge your skill level before making a commitment.
Whether you want to trade or invest in stocks, forex, commodities, indices, and more, ensure the AFM regulated you choose supports these instruments. A broker hosting additional securities is a plus since you will be able to efficiently explore what you are familiar with and diversify your portfolio.
The best element about portfolio diversification is that you can spread your capital across different assets. This reduces the chances of losing all your money if a trade doesn’t work out in your favour.
It is important to have a budget and choose an AFM-regulated broker that fits it. This means that you should analyse a broker’s fee structure and understand all the trading and non-trading charges applicable. There should be no hidden costs to avoid future inconveniences.
That being said, confirm a broker’s minimum deposit requirement, spreads/commissions, inactivity charges, overnight fees, and more. Simply ensure you set aside funds you are comfortable losing in case a trade or investment fails to work out as planned.
In the UK, AFM-regulated brokers support transactions using various payment methods. Choose a broker with options you prefer that will make transactions easy for you. For instance, our recommended AFM brokers above allow traders and investors to make deposits and withdrawals using credit/debit cards, e-wallets, and bank transfers.
Our market analysis shows that many UK traders and investors looking for brokers overlook this element. You see, just like the financial market is unpredictable, trading and investing are also the same. You might have an idea of what you are getting into but end up experiencing challenges.
With a broker backed up with a reliable support team, rest assured of quality assistance, whether in terms of guidance or clarifications. Simply ensure the AFM-regulated broker you choose operates during hours that align with your schedule. Plus, it must be accessible via convenient channels, whether by phone, email, or live chat.
How to Register an Account with an AFM-Regulated Broker
Many traders and investors in the UK are sceptical about making their first investments due to not being privy to how to get started. With the best AFM-regulated brokers like the ones we reference above, setting up an account takes a few minutes. The procedures involved are not complex, and you will not need guidance as long as you share accurate information.
If you’re a newbie, let’s explore below the step by step procedures for registering a trading/investment account with an AFM broker in the UK.
Step 1: Visit Your AFM-Regulated Broker’s Website
Step 2: Begin the Account Registration Procedure
Step 3: Verify Your Personal Details
Step 4: Make a Deposit
Step 5: Start Trading/Investing
Whether you have chosen a broker from our recommendations list above or have conducted your own research for one, you must visit its official website to set up an account. At this point, we hope that you will have already analysed the broker’s features and are comfortable.
Therefore, while on the site, start by understanding the broker’s terms of service to avoid future inconveniences. Most importantly, install its trading app on your mobile device. It’s a no-brainer that mobile trading has streamlined traders’ and investors’ activities, and you do not want to miss out on this privilege.
Proceed to click the register or sign up button on the right side of the upper corner of the broker’s homepage. There will be a form to fill in with your personal details. These include your name, email, phone number, date of birth, source of income, and more. Furthermore, you should create a username and strong password to secure your account from unauthorised access.
AFM doesn’t play when it comes to ensuring the online trading landscape in the Netherlands is safe. In this regard, all brokers it oversees in the region must verify traders’ or investors’ accounts before fully activating them. This standard protocol ensures the financial space in the region is free from imposters.
In this procedure, you will be asked to share some of your personal documents’ copies. These include an ID card, passport, or driver’s licence as proof of identity. And to verify location, you must also share a copy of your current utility bill or bank statement. The verification process may take hours, and you will receive an email notification once your account is fully activated.
Deposit money into your account, considering your broker’s minimum deposit requirement. With brokers like the ones we recommend, you can choose to transact using a convenient method for you. This is because they support a wide range of options, including credit/debit cards, e-wallets, and bank transfers. Plus, they impose favourable transaction fees, enabling you to trade under budget.
Your AFM-regulated broker will confirm your deposit and automatically redirect you to its platform to choose an asset you prefer. Ensure your broker supports numerous assets from a variety of classes. This will make it easier to trade your best options and explore new ones to diversify your portfolio.
Select a trade size and open a position after activating risk management controls. Remember, the financial market is volatile, and asset prices constantly change. You do not want to lose a lot of money in case a trade or investment works out against you. For beginners, we advise you to start trading via your broker’s demo account and gain enough confidence before transitioning to live trading.
FAQs
What is AFM regulation?
AFM regulation means that a broker adheres to the stringent rules of the Authority for the Financial Markets (AFM). This is the financial regulator in the Netherlands, and trading with brokers regulated by it means that you will have access to the country’s financial markets.
How do I know if my company is AFM regulated?
The best way to confirm if your company is regulated by the AFM is to visit the authority’s official website. Key in the company’s name or license number to verify its credibility.
How do you check if a broker is regulated?
Knowing whether a broker is regulated or not will require you to visit its official website. On the about us page, you will find the list of authorities regulating the broker or license numbers that you can use to verify its credibility.
Can you trust unregulated brokers?
No. Unfortunately, that is a risk that we wouldn’t advise you to take. This is because some of the unregulated brokers are fraudsters, waiting to drain you off your trading funds once you sign up for a trading account with them.
Are AFM regulated brokers safe?
Yes. The Authority for the Financial Markets (AFM) is the main regulatory commission in the Netherlands. Therefore, any broker regulated by it is safe. However, in the UK market, such brokers should also be approved by the Financial Conduct Authority (FCA) to guarantee UK traders’ safety even more.
Conclusion
Now that you know the top AFM-regulated brokers in the UK, there is no excuse for not engaging in the financial space. If you are a beginner, do not rush to invest real money in the activity. Instead, start by utilising brokers’ learning resources and demo accounts. Familiarise yourself with how the financial market operates until you are confident in your skill level.
When you are ready to make your first trade or investment, start with a small capital and gradually increase the amount as you progress. Most importantly, always conduct market analysis and develop solid strategies before opening a position. This is because the financial market can be unpredictable, and you do not want to blindly invest and lose your hard-earned money.
How we test?
Our test process is really based on two different aspects: our independent tests and research, as well as user reviews from Google Play, the App Store, and Trustpilot, etc.
The first thing we do when testing is to check every detail and test every tool and instrument. Our experts spend more than 200 hours on every article. We pay special attention to the specific function or the criteria that we’re comparing during the comparing stage. This means that we must determine which broker is more suited for beginners, and which is better suited for experts, for example.Find out more about our test process here.
Thadeus Geodfrey
Is a regular dad trying to be smart about how we play and win in this big game of life. He has worked within the very best of the financial industry producing numerous training resources. He is an experienced copywriter with immense financial background. Now earns a full time living as a Trader, and as our writer.
His articles help everyday families build sustainable wealth, stop stressing about their financial security, and start living the life they’ve always wanted.
If he is not trading or writing, he is at the gym.
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